The Council of Ministers has approved an additional aid package for citizens affected by the DANA. As part of the new measures, the period when mortgage payments can be frozen is extended. Even so, who is responsible for the mortgage if our home is destroyed, and are we entitled to any help if we do not have home insurance?

The Official State Gazette (BOE) published today, Tuesday, the second package of urgent measures approved by the Council of Ministers to help citizens affected by the DANA in the municipalities of the Valencian Community, Castilla-La Mancha, and Andalusia and alleviate the disastrous economic situation that many families, the self-employed, and businesses find themselves in as a result of the floods.

The new aid package includes 110 additional measures worth 3.765 billion euros, in addition to the 10.6 billion announced on 5 November, for a total of 14.365 billion. This aid is to be allocated to the first phase of immediate response and the second phase of reconstruction, as part of the Immediate Response, Reconstruction and Relaunching Plan to deal with the damage caused by the DANA.

Among the new measures, Pedro Sánchez points out that this aid can be extended to owners who did not live in their properties, but who had rented them, as well as compensation for material losses to tenants and for goods that are not basic necessities. Furthermore, ‘in order for this aid to arrive more quickly, we have decided in this Council of Ministers to make an immediate advance payment of 50% to all citizens who apply for this aid’.

Who is responsible for the mortgages of those affected?

The Ministry of Finance and the banking sector have mobilised to implement a moratorium of at least three months on mortgage payments for citizens affected by the DANA. This is similar to the measures implemented by Spanish banks after the volcanic eruption of La Palma, when 3,227 moratoriums were granted for a total of 133.8 million euros.

In this context, and according to the decree approved last week, families could take advantage of a new extension of an extra nine months, during which the capital of the loan does not have to be paid, but the interest generated will continue to be charged. With the new measures approved on Monday, affected households at risk of vulnerability can extend this period for an additional 12 months.

Even so, many of these buildings have been totally or partially destroyed. It is estimated that, in the municipalities of Valencia alone, more than 75,000 homes have been affected by the floods. In these cases, home insurance, except for specific agreed coverage, does not cover the destruction of a home due to a natural catastrophe, thus, it will be the Insurance Compensation Consortium that will be responsible for taking care of the damage.

However, only homeowners who have taken out home insurance will be covered by the Consortium. In cases where there is no insurance, the Government has the power to classify an area as catastrophic, so that it can have access to a series of aid from the public administration.

As for those affected by this hurricane, people who have been affected can apply for up to 60,480 euros for the destruction of their usual residence; 41,280 euros if the damage affects the structure; 20,640 euros if it does not affect the structure; 10,320 euros for essential household goods; and 36,896 euros for common elements of a community of owners. In addition, it is possible, at no cost to the consumer, to modify and temporarily suspend supply contracts, as well as to defer bills.

For more information on the aid available and how to apply for it, you can consult the websites of the Administration and the consumer association FACUA.

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